Livestock –
Cash cattle business picked up yesterday and some prices were as much as +$4 on the week. It looks like most cash business could be done for the week. The strong cash prices helped push LCG, the most active contract, to its highest level since June. In today’s cattle on feed report, analysts expect on feed numbers to be down -1.3% yoy. However, I hear some people think COF could be smaller than that. Maybe this helps explain the strong run we have seen in cash prices? Placements are expected to be up +11.9% yoy, and marketings to be up +15% yoy. Looking at the range of these estimates, it looks like some people believe placements could be larger than marketings; if that happened it could throw a curve ball into this report that catches the market off guard.
There were no cattle deliveries yesterday.
For the week ending Dec 10, avg cattle carcass weights were down 5 lbs wow to 838 lbs. Steer weights were down 5 lbs to 908 which is 1 lbs smaller than last yr and heifers were down 5 lbs which is 4 lbs below last yr. While the drop is weights was pretty sharp, cattle remain heavy when compared to the five yr average; the avg cattle carcass weight is about 30 lbs over the average.
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